Shenhua Erdos Coal to Oil Branch Company, as a wholly owned subsidiary of China Shenhua Coal to Liquid and Chemical Co., Ltd under China Shenhua, locates in Wulanmulun Town, Yijinhuoluo Banner Erdos City, Inner-Mongolia. It is a leading industrial enterprise in the world in coal liquefaction field, owning the independent intellectual property right of direct coal liquefaction process, and the world’s largest advanced modern direct coal liquefaction plant. It uses its technical know-how to produce petroleum and petrochemical products from coal via chemical processing, also it has a standard quality inspection center equipped with first class apparatus.

The company’s coal liquefaction plant is the world’s first commercial direct coal liquefaction line, and is a key project in the “10th-five-year-plan” period. It plays an important role in national energy strategy and industry strategy, as well as Shenhua’s development strategy. It is a national demonstration project of clean coal processing and conversion, and an important way to debottleneck China’s petroleum supply, by this Shenhua will become a world first-class energy enterprise of coal utilization and deep-processing.

The company has a highly qualified staff, gathering many well experienced professionals on petrochemical, technology, equipment, production and safety for the product development and production; and also a team of knowledgeable, competitive and research-minded young undergraduate for operation. This makes the simple organization structure of Shenhua highly-effective.

The company takes people as the foremost for the business thriving, and keeps to the management concept of “ACCURATE, STRICT, SAFE & EFFECTIVE”. It encourages such corporate spirit as “SCIENTIFIC, AUDACIOUS, FORTITUDINOUS AND STRUGGLING ”, such work style as willingness, creation and innovation, and such business principle as lawful, faithful, open competitive and seeking for top-ranking.

The Company commits itself to China’s petroleum substitution cause by innovation, and endeavors to strengthen and optimize management, innovation and upgrading, based on the standard of “intrinsic safe, quality benefit, energy saving, technically innovative, and harmonious developing”. It will take part in the energy market competition and will seek for long term cooperation with strategic partners for mutual development.

Shenhua’s direct coal liquefaction process uses nanometer catalyst jointly developed by Shenhua and China Coal Research Institute CCRI, which was listed into National 863 Plan. The coal upgrading reaction is completed under the action of hydrogen donor solvent and HTHP to produce naphtha, diesel oil and liquefied gas from coal.

China Shenhua’s Direct Coal Liquefaction Demonstration Project was approved by National Development and Reform Commission in Sept. 2002. Phase I of the project involves capital investment of ￥15 billion RMB, with a capacity of 1 million KTPA oil. Total capacity of the project shall be 5 million KTPA oil. After years of construction, on Dec. 31, 2008, Phase I was completed and its first commissioning test run succeeded.

In the course of construction, Shenhua’s Direct Coal Liquefaction Demonstration Project has draw attention of many state leaders, General Secretary Hu Jintao, Premier Wen Jiabao, and Wu Bangguo, Jia Qinglin, Xi Jinping, Li Keqiang, He Guoqiang, Zhou Yongkang, and other leaders have visited the worksite. In the letter from the Ministry of Industry and Information Technology of the PRC under State Council to celebrate its successful commissioning, it is said that “The success of the direct coal liquefaction plant constitutes an important milestone of China’s Coal-to-Oil technology, it means that China has become the first country owning critical technology of direct coal liquefaction in the world. It is significant to China’s technological innovation, self-provision of energy and maintaining Chinese type of Industry.